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NextEra Plans To Raise $1.5 Billion To Fund Energy Projects

2024-10-29 10:14

Wedoany.com Report-Oct 29, Utility firm NextEra Energy (NEE.N), said on Monday it intends to raise $1.5 billion through the sale of equity units to fund new projects.

Utility firms across the United States are ramping up investments in power projects to meet an expected spike in demand, fueled by artificial intelligence data centers.

The fund raise would be the second such initiative by the company this year, primarily to invest in its energy and power projects.

NextEra, which owns the world's largest renewables business and one of the biggest U.S. regulated electric utilities, reported a backlog of 24 gigawatts (GW) in the third quarter for its renewable arm.

The company said on Monday that each equity unit, issued in a stated amount of $50, will consist of a contract to buy NextEra's common stock in three years in cash and based on a range from zero to 25% premium, compared to the closing price of Oct. 28.

NextEra shares closed up 1.8% at $82.87 on Monday but dropped 2.4% after the bell.

The unit offering would also include 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings debt, due on Nov. 1, 2029, to be issued in the principal amount of $1,000, the company added.

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